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Excise News 03/07



Transport details to be shown on AADs

Recording shortages on AADs/W8s

Notification of cash transactions

Memoranda of Understanding (MoUs)


July 2007

Transport details to be shown on AADs

This is a reminder about the need to complete all boxes on the AAD, including those relating to the transporters and means of transport (Boxes 9 and 11). The information required is detailed in the notes on the back of the AAD.

For every movement requiring an AAD, the name and address of the transporter (the person responsible for arranging the first movement, if different from the consignor) MUST be shown in Box 9.

In addition the registration details of the first vehicle undertaking the movement of the goods from the warehouse MUST be shown in Box 11.

If it is known at the time of removal that there will be other transporters or vehicles subsequently involved in the movement, then these details MUST also be shown in Box 11.

Where the identity of any subsequent transporter or vehicle is not known at the time of removal, then we may in certain circumstances request that this information is supplied once it becomes known.

For goods received from other Member States, you should encourage your suppliers to ensure that they have fully completed the AAD correctly, as failure to do so may result in unnecessary delays and disruption if our officers ask to examine the AAD during the movement.

Recording shortages on AADs/W8s

Excise News 05/06 introduced the new format W1 warehouse return and included the new requirement for warehousekeepers to provide details of W8s (copy 3 receipts) returned showing shortages in intra-UK duty suspension removals. It also retained the requirement that warehousekeepers must give details of any AAD (copy 3 receipts) returned showing shortages in intra-EU duty suspension despatches.

The purpose of this article is to remind UK warehousekeepers that the requirement to complete AAD or W8 shortage detail on the W1 return does not replace the separate conditions placed by Sections 87 and 88 of Notice 197, relating to recording and notification of shortages and losses identified in duty suspension receipts at the warehouse.

Where shortages or losses are identified in consignments received from other EU Member States, the warehousekeeper must continue to record the loss in section C on the reverse of the AAD, enter the goods actually received in their records, and send copy 3 of the AAD to the National Verification Centre (NVC) at the following address:

HM Revenue & Customs
Ground Floor
Portcullis House
21 India Street
Glasgow G2 4PZ

Where the loss is due to a genuine accident, or natural causes, and the loss qualifies for remission of excise duty, the receiving warehousekeeper should notify the NVC of this when returning the copy 3 AAD. They should also enclose any documentary evidence they may have to support a case for remission of the excise duty.

Where shortages or losses are identified in consignments received from another UK warehouse, the warehousekeeper receiving the goods should continue to notify the ‘consignor’ warehousekeeper in accordance with Section 87 of Notice 197.

Notification of cash transactions

Since 1 January 2006, traders producing, holding, despatching or dealing in duty suspended alcohol have been required to notify HMRC of cash payments in excess of £9,000 made to them for the sale of alcohol, or services provided in connection with those goods. The traders covered by this requirement are:

  • registered under the Warehousekeepers and Owners of Warehoused Goods Regulations (WOWGR) 1999:
    - excise warehousekeepers
    - registered owners of goods held in warehouse
    - registered duty representatives.
  • Producers registered or licensed under the Alcoholic Liquor Duties Act (ALDA) 1979:
    - spirits producers
    - registered brewers
    - wine and made wine producers
    - cider and perry producers.

Recent assurance visits have highlighted that some traders are either not currently notifying HMRC of any cash payments, or are omitting key information from the notification form W7 (eg the amount of the cash payment not entered within Part 3 of the W7 Notification form).

How should traders notify HMRC of cash transactions?

Traders should notify these transactions to HMRC on form W7. Correctly completed W7 forms must be sent prior to the despatch of the goods or provision of services by fax or email to:

National Warrant Processing Unit
Fax number 0131 469 7321

For further advice, phone the National Advice Service on 0845 010 9000.

Memoranda of Understanding (MoUs)

On 2 July 2007, HMRC and trade representatives from the Bonded Warehousekeepers Association (BWA) and the United Kingdom Warehousing Association (UKWA) signed up to Memoranda of Understanding (MoUs). These MoUs are a key part of the Government’s strategy to tackle alcohol fraud and have been agreed with the UKWA and the BWA after a long period of negotiation.

The MoU sets a framework of co-operation, to enable HMRC and industry to work together to tackle alcohol fraud. This relationship is crucial, not only to protect the revenue, but also the interests of honest warehousekeepers.

Businesses signed up to the MoU agree to notify HMRC of instances where specific risk criteria are met in the course of their dealings with other alcohol traders.

In turn, HMRC commits to work closely with warehousekeepers where fraud is identified, taking robust action to counter it and wherever possible, to feed back specific outcomes to the industry.

MoUs have previously been agreed and signed with trade associations representing producers and importers of spirits. We recognise the importance of securing as much of the alcohol supply chain as possible to make it difficult for potential fraudsters, and as a result, we are currently negotiating MoUs with other sectors within the alcohol supply chain.

Businesses already signed up to other MoUs should adhere to the MoU which is most appropriate to their business activities. Therefore, members of the BWA and UKWA who are already signed up to the producers’ MoU should continue to adhere to this. Businesses who operate solely as excise warehousekeepers should adopt the warehousekeepers’ MoU.

If you are a member of the BWA or UKWA and would like more information about the MoU, please contact your association representative. Your representative can provide you with copies of the MoU and a User Guide, which includes guidance about making notifications, a standard form to complete and details about who to contact within HMRC.

If you would like some general information about MoUs, please contact Ruth Ryan at the following address:

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$START-DATA$ title=Excise News 03/07^ summary=This edition contains reminders on the correct completion of the AAD, how to record shortages on AADs/W8s, the requirement to notify HMRC of large cash transactions and an update on our current Memoranda of Understanding (MoUs) with industry.^ doctype=Report^ date=20-Sep-2012^ author=lk125388^ $END-DATA$
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